On Aug. 20, the Commonwealth Bank of Australia’s venture-scaling arm, x15ventures, will close applications for its annual Xccelerate program — an opportunity for tech startups to win a $250,000 investment into their company.
The competition reflects the CBA’s broader efforts to establish itself as a dominant force in fintech AI. The bank’s initiatives, including its partnership with Microsoft and the work of x15ventures, highlight its intent to replicate the success of its ambitious digital transformation program that disrupted the banking sector a decade ago.
x15ventures: A Hub for Innovation
In July, CBA’s x15ventures opened applications for Xccelerate.
x15ventures is dedicated to building, buying, and investing in startups that align with CBA’s strategic goals. In the four years that it has been in operation, the program has made a dozen strategic investments in innovations, including Splashup, OwnHome, Payable, and Doshii.
These investments have largely been in applications that promote innovation within financial services. But Laura Faulconer, portfolio director at x15ventures, said that the VC is now specifically interested in AI.
“We’re interested in a broad range of AI capabilities,” she told TechRepublic. “And some of the areas that we are particularly getting closer to right now with Xccelerate are how AI and data can reimagine employee experience, and improve customer outcomes — whether that is CommBank as a customer, or whether we are a scale partner adding value to our Retail and Business customers.”
Faulconer said the program not only offers financial investment but also strategic guidance, helping startups navigate the complexities of partnering with a major bank. Additionally, through collaboration, the program helps to draw value from the innovation itself.
“We know it’s hard to partner with a bank if you’re early stage,” she said. “But that’s x15’s secret sauce: We can find the right opportunity and help them partner in a way that they couldn’t achieve directly.”
Entrepreneurs, startups, and innovators are trying to find funding in a market undergoing a “cleansing,” as an AFR report stated. x15ventures represents a stable source of ongoing investment for those that can meet its objectives.
“I’d say the VC environment is ‘mixed,’” Faulconer said. “I think the investment sentiment is recovering … but that’s not to say that it’s not still very hard out there for companies that are still on their journey to product market fit.”
What the pivot to AI means for IT professionals
The CBA aims to set new benchmarks for the financial industry by integrating AI into various aspects of its operation. The bank’s use of AI to automate routine tasks, personalise customer interactions, and enhance decision-making processes offers a glimpse into the future of banking.
At the start of the year, CBA made a specific point to highlight the depth of its investment AI models in its financial update.
Then, in March, it announced a partnership with Microsoft to leverage generative AI to enhance customer service and improve operational efficiency. A key outcome of this partnership is the development of the “CommBank Copilot,” an AI-powered tool designed to resolve customer queries more quickly and help customers manage their finances more effectively.
“Working in partnership with Microsoft, alongside other external partners, gives us the opportunity to access global expertise in a range of areas so we can deliver more for our customers — including the incredibly fast-moving area of generative AI,” Gavin Munroe, CBA’s group executive for Technology and group CIO, said in a blog at the time.
The CBA’s heavy pivot to AI technologies signals a significant shift in the IT landscape in Australia.
IT professionals know the value of developing skills associated with AI, but as more financial institutions and large enterprises follow CBA’s lead, the demand for expertise in these areas is expected to surge. AI specialists will find themselves in particularly high demand in this sector.
In the longer term, the relationship between financial services, venture investment, and AI should create an ecosystem effect — and help strengthen Australia as both a leader in AI-driven financial services and entrepreneurial invention.